FINRA Series 31 - Quiz 12 - Pauline.new
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Question 1 of 10
1. Question
Which of the following is true about the order tickets under the Memoranda of Brokerage Order and Dealer Transactions?
I. Show the terms and conditions of the order or instruction
II. Identify the account for which the order is entered
III. The order tickets show the CRD number
IV. A list of every office where each associated person regularly conducts businessCorrect
Under the checklist of the Books and Records requirements, there is the memoranda of brokerage orders and dealers’ transactions. An individual must ensure that for every brokerage order, the order ticket must show the terms and conditions of the order and if there are any cancellation or modification, it must also identify the account where the order has been entered, and lastly, it should identify the associate person that is responsible for the account or if another person accepted the order in behalf of the customer.
Incorrect
Under the checklist of the Books and Records requirements, there is the memoranda of brokerage orders and dealers’ transactions. An individual must ensure that for every brokerage order, the order ticket must show the terms and conditions of the order and if there are any cancellation or modification, it must also identify the account where the order has been entered, and lastly, it should identify the associate person that is responsible for the account or if another person accepted the order in behalf of the customer.
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Question 2 of 10
2. Question
Which of the following is true about the Associated Person Location and Identification Number Records?
I. The terms and conditions are shown
II. A list of every office where each associated person regularly conducts business
III. The account is identified where the order has been entered
IV. Every internal identification number or code assigned to that person by the broker/dealerCorrect
There are several requirements that must be reminded in the Books and Records Checklist, one of these is the Associated Person Location and Identification Number Records. For every associated person, an individual must ensure the records contains the list of every office where the business is conducted by each associated person regularly, it also contains the CRD number, and lastly, the internal identification code or number that was assigned to an individual by the broker-dealer.
Incorrect
There are several requirements that must be reminded in the Books and Records Checklist, one of these is the Associated Person Location and Identification Number Records. For every associated person, an individual must ensure the records contains the list of every office where the business is conducted by each associated person regularly, it also contains the CRD number, and lastly, the internal identification code or number that was assigned to an individual by the broker-dealer.
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Question 3 of 10
3. Question
Which of the following is true under the checklist of the Associated Person Compensation Records that the record must contain?
I. Each purchase and sale of a security attributable to that associated person for compensation purposes
II. A list of every office where each associated person regularly conducts business
III. All agreements pertaining to the relationship between the broker/dealer and each associated person.
IV. Identify the account for which the order is enteredCorrect
Under the Record and Books Requirements Checklist is the Associated Person Compensation Records that states that an individual must ensure that each associated person, a record must contain the purchased and sale of the security attributable for compensation purposes, it also include the amount, either monetary or non-monetary, the compensation attributable and description of the compensation, respectively. Lastly, all of the agreements must be included that is pertaining to the relationship of the associated person and the broker-dealer.
Incorrect
Under the Record and Books Requirements Checklist is the Associated Person Compensation Records that states that an individual must ensure that each associated person, a record must contain the purchased and sale of the security attributable for compensation purposes, it also include the amount, either monetary or non-monetary, the compensation attributable and description of the compensation, respectively. Lastly, all of the agreements must be included that is pertaining to the relationship of the associated person and the broker-dealer.
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Question 4 of 10
4. Question
Which of the following is true about the included records under the Associated Person Complaint Records?
I. The complainant’s name, address, and account number
II. The disposition of the complaint
III. The customer’s or owner’s address
IV. The account’s investment objectivesCorrect
Under the Associated Person Complaint Records, an individual must ensure that each associated person, there is a corresponding record regarding the written complaint of the customers that was received by the firm concerning such associated person. The record contains the name, address, and account number of the complainant, the date when the complaint was received, the name of the associated person identified by the complainant, the complaint’s description, and lastly the complaint’s disposition.
Incorrect
Under the Associated Person Complaint Records, an individual must ensure that each associated person, there is a corresponding record regarding the written complaint of the customers that was received by the firm concerning such associated person. The record contains the name, address, and account number of the complainant, the date when the complaint was received, the name of the associated person identified by the complainant, the complaint’s description, and lastly the complaint’s disposition.
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Question 5 of 10
5. Question
Under the Books and Records Requirements Checklist, which of the following is true about the records included in the Customer Account Records?
I. A list of every office where each associated person regularly conducts business
II. An indication of whether the record has been signed by the associated person responsible for the account
III. If the account is a discretionary account, the dated signature of each customer or owner granting the authority and the dated signature of each natural person to whom discretionary authority was granted
IV. The customer’s or owner’s tax identification numberCorrect
Under the Books and Records Requirements Checklist, the Customer Account Records states that an individual must ensure that for the accounts of a natural person, either a customer or owner, must have a record that contains the name, tax identification number, address, telephone number, date of birth, employment status, annual income, and net worth of the customer or owner. The investment objectives of the account must also be included. The indication where the record has been signed by the associated person and is approved by the firm’s principal. Lastly, if it is a discretionary account, the dated signature of the customer or owner that has granted the authority and the signature of the natural person is also included.
Incorrect
Under the Books and Records Requirements Checklist, the Customer Account Records states that an individual must ensure that for the accounts of a natural person, either a customer or owner, must have a record that contains the name, tax identification number, address, telephone number, date of birth, employment status, annual income, and net worth of the customer or owner. The investment objectives of the account must also be included. The indication where the record has been signed by the associated person and is approved by the firm’s principal. Lastly, if it is a discretionary account, the dated signature of the customer or owner that has granted the authority and the signature of the natural person is also included.
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Question 6 of 10
6. Question
Which of the following is true about the records indicated regarding the Furnishing of the Account Record?
I. The firm has included with the account record or alternative document provided to each customer or owner an explanation of any terms regarding investment objectives.
II. For each change in an account’s investment objectives, the firm has furnished each customer or owner and the associated person
III. The firm has included with the account record or alternate document prominent statements that the customer or owner should mark any corrections
IV. An indication of whether the record has been signed by the associated person responsible for the accountCorrect
Under the Furnishing of the Account Record, an individual must ensure that each account of the natural person, either a customer or owner, must indicate the following records – each customer that opens an account, the firm already furnished it. They obtained the account record information of the customer or owner, included alternative documents, alternate document prominent statements, furnished the customer or joint owner, if there are changes in the investment objectives of the account, the customers are provided with a copy of the written agreement, and lastly, the customers received a notice that has the address and telephone number of the firm’s department regarding such complaints.
Incorrect
Under the Furnishing of the Account Record, an individual must ensure that each account of the natural person, either a customer or owner, must indicate the following records – each customer that opens an account, the firm already furnished it. They obtained the account record information of the customer or owner, included alternative documents, alternate document prominent statements, furnished the customer or joint owner, if there are changes in the investment objectives of the account, the customers are provided with a copy of the written agreement, and lastly, the customers received a notice that has the address and telephone number of the firm’s department regarding such complaints.
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Question 7 of 10
7. Question
Which of the following is under the exemptions from the account record information and furnishing requirements?
I. The Communication Supervision Records
II. One of the exemptions is the Contact Person Records
III. All agreements pertaining to the relationship between the broker/dealer and each associated person.
IV. Every internal identification number or code assigned to that person by the broker/dealerCorrect
Under the Books and Records Requirements Checklist, there are several exemptions from the account record information and furnishing requirement. Such exemptions must be known by an individual. The exemptions include the Communication Supervision Records, the records of the contact person, the records of the responsible principal, and lastly, several office records. The following exemptions also have their own record retention ranging from two years to six years.
Incorrect
Under the Books and Records Requirements Checklist, there are several exemptions from the account record information and furnishing requirement. Such exemptions must be known by an individual. The exemptions include the Communication Supervision Records, the records of the contact person, the records of the responsible principal, and lastly, several office records. The following exemptions also have their own record retention ranging from two years to six years.
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Question 8 of 10
8. Question
Which of the following records that must be preserved by the brokers and dealers?
I. Organizational Documents must be preserved
II. Special Reports must be kept by the brokers and dealers
III. The communications with the public must also be preserved
IV. All the receipts even not needed must be keptCorrect
Under the Records and Books Requirements checklist, the records that must be preserved by the brokers and dealers are stated. Such records must be kept by such brokers or dealers and it must be stored for future reference or use. The following records that must be preserved include the communications with the public, documents such as organizational documents, reports such as special reports and exception reports, and lastly, manuals regarding the compliance, supervisory, and procedures.
Incorrect
Under the Records and Books Requirements checklist, the records that must be preserved by the brokers and dealers are stated. Such records must be kept by such brokers or dealers and it must be stored for future reference or use. The following records that must be preserved include the communications with the public, documents such as organizational documents, reports such as special reports and exception reports, and lastly, manuals regarding the compliance, supervisory, and procedures.
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Question 9 of 10
9. Question
Which of the following is true about the general requirements in the records and books?
I. Members shall preserve the books and records for a period of at least 6 years
II. Members shall preserve books under the NFA rules
III. Books and records shall be preserved in a format and media
IV. Members shall preserve the books and records for a period of at least 3 yearsCorrect
The books and records have general requirements to be followed by the members. The general requirements include that the members shall preserve and make books and records that are required under the rules of FINRA, the Exchange Act and its rules. Another requirement is that the member shall preserve such FINRA books and records for a period of at least six (6) years and under FINRA rules there is no specified period. Lastly, all the books and records according to the FINRA rule that it shall be preserved in a format and media that complies with the rule.
Incorrect
The books and records have general requirements to be followed by the members. The general requirements include that the members shall preserve and make books and records that are required under the rules of FINRA, the Exchange Act and its rules. Another requirement is that the member shall preserve such FINRA books and records for a period of at least six (6) years and under FINRA rules there is no specified period. Lastly, all the books and records according to the FINRA rule that it shall be preserved in a format and media that complies with the rule.
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Question 10 of 10
10. Question
Which of the following are the information that each member shall maintain under the books and records requirements for each account regarding the customer account information?
I. Name of and contact information for a trusted contact person age 18 or older who may be contacted about the customer’s account
II. Name(s) of the associated person(s), if any, responsible for the account, and if multiple individuals are assigned responsibility for the account, a record indicating the scope of their responsibilities with respect to the account, provided, however, that this requirement shall not apply to an institutional account
III. The complainant’s name, address, and account number
IV. The disposition of the complaintCorrect
Under the books and records requirements, there is the customer account information that needs to be maintained by the members. For each account, they should maintain or know the name and residence of the customer, they should also know whether the customer is of legal age, the name/s of the associated persons and those responsible for the accounts must be indicated, the partner, officer, or manager’s signature representing that the said account has been acknowledged, and the names of the people that are authorize, in behalf of the entity, to transact business. Lastly, the names and contact information of the trusted contact that is 18 years old or older that may be contacted regarding the account of the customer.
Incorrect
Under the books and records requirements, there is the customer account information that needs to be maintained by the members. For each account, they should maintain or know the name and residence of the customer, they should also know whether the customer is of legal age, the name/s of the associated persons and those responsible for the accounts must be indicated, the partner, officer, or manager’s signature representing that the said account has been acknowledged, and the names of the people that are authorize, in behalf of the entity, to transact business. Lastly, the names and contact information of the trusted contact that is 18 years old or older that may be contacted regarding the account of the customer.